Know tax rules when selling wool

Farmers must be sure of tax rules when selling wool outside the British Wool Marketing Board.

NFU Cymru is warning sheep farmers they may be liable for a VAT charge on the sale unless it can be proved the wool left the UK within three months of sale.

Farmers must have the correct documentation, according to HMRC, and know whether the wool is actually exported, rather than used within the UK.

“By taking a few simple steps farmers can avoid hassle and potential fines, including interest payments later on,” said Ed Bailey, NFU Cymru president.

“They should obtain any other potential buyer’s VAT number and quote this on the VAT invoice raised for the wool supplied. They should also keep copies of any correspondence that shows the wool has left the UK within three months of it being sold.”

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